Since Tepper, founder of Appaloosa Management, personally made $2.2 billion last year, and was listed by Forbes as the highest-earning among the top 40 hedge fund managers, his top holdings are being studied by almost everyone. Goodyear Tire & Rubber Co. (NASDAQ:GT) is one long-term component of his equity portfolio.
As of the quarter ending Sept. 30, 2012, Tepper’s last increase of 27.35% brought his GT stake to 14,313,702 shares at an average price of $12.35 with a 2.1% gain. At the end of 2012, Tepper had 14,345,610 GT shares, with Goodyear Tire & Rubber Co. (NASDAQ:GT) accounting for 4.3% of his equity portfolio.
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Organized in 1898, Goodyear Tire & Rubber Co. has a market cap of $3.09 billion; its shares are traded around $12.61 with a P/E ratio of 16.8 and P/S ratio of 0.1. Goodyear Tire & Rubber Co. had an annual average earnings growth of 16.6% over the past five years. According to GuruFocus research, Tepper is by far the largest GT stakeholder Guru, with over 14 million shares of the household name-brand tire.
His holding history:
Tepper’s portfolio lists 57 stocks with a total value of $4.6 billion, and a quarter-over-quarter turnover of 22%. Tepper’s hedge fund, Appaloosa Management, had net returns of almost 30% last year, with an average annual return of 23.3% over five years, and 29.2% since its inception in 1993. Of his successful hedge fund Tepper has said, “We bet on the country’s revival.”
David Tepper’s top buys, sells and holdings:
Read more about David Tepper’s Top 5 Buys.
Tepper is known for his philanthropy, especially to schools. In 2004 Tepper donated a record $55 million to his alma mater Carnegie Mellon University. The deep pockets Guru is quoted as saying, “The more I make, the more I’ll give away. “